Published by Virgo Publishing

Posted on: December 2nd, 2009

“As-is” / “no warranty” equipment purchases versus reconditioned

With today’s stressed economy, more salon owners and start-up operators are moving away from purchasing new equipment and focusing their investment capital on used. And although this is a great way to dramatically reduce developmental costs, one important question needs to be asked… “Exactly what are you getting for your dollar?”

Be careful about your choices.

For many buyers, the decision process is complicated enough. Trying to choose the right brand name, which levels of tanning are best, what units feature the most in comfort and simplicity, which systems assure reliable performance…? These are just some of the issues to be considered. But in the final analysis, after your money has been spent, and it is too late to change your mind, what will you end up owning? Was your purchase a wise investment or simply the transference of someone else’s headaches? Receiving sunbeds, medspa devices, or other equipment that ultimately turn out to be problematic or damaged can turn your choices into nightmares. And how much additional costs will you incur to make things right?

Some of the risks of “as-is” or “no warranty” buying.

Systems that are being offered “as-is” or with “no warranty” generally represent devices that are either being flipped by a salesman, who has little knowledge about the condition of each unit, or a salon owner who has reason to want to be rid of his possession. This will almost always mean that the equipment has not been cleaned or repaired, either internally or externally, which can often leave buyers with several dilemmas: blocked filters and poor air flow – cracks, scratches, dents, discolorations, or noticeable marks resulting in poor presentation to prospective customers – the need to replace perishable components – or even, in some cases, the need to identify and repair concealed electrical or mechanical problems that show up sooner or later. So, should a salon owner or start-up operator roll the dice and buy used, “as-is” or “no warranty” equipment and take the risk of so many uncertainties; or are there better options for purchasing quality systems, at dramatic savings, that offer devices in “like-new” condition with the guarantees and assurances that smart shoppers are seeking? The good news is that there are better alternatives!

There are countless risks that go with “as-is” or “no warranty” purchases. Here are just a few:

#1- Equipment being bought from salons that are closed or from suppliers looking to “flip” systems will generally never include any assurances whatsoever. If there are any visible or concealed damages, electrical issues, and/or mechanical irregularities, it will be the responsibility of the buyer to invest whatever additional sums of money are necessary to fix those problems. And sporadic failures are the worst. They can create a “domino-effect” of troubles in a system, over a longer period of time, which can lead to ridiculous expenses for a buyer. And because they occur inconsistently, they are often very hard to pinpoint, which means they could go unresolved for years.

#2- These devices are almost never cleaned, re-painted, or refurbished in any way. And with the importance of presentation to prospective clients, a shoddy appearance or “paint brush finish” can discourage new customers from signing up with your salon. Also, dust build-up can be extremely problematic. Blocked air passages and vent ducts along with decayed or missing baffles can cause overheating, ultimately resulting in user discomfort and component failure.

#3- Buyers who unwittingly purchase equipment that may be under legal dispute or filings, could face possible risks of UCC lien litigations, civil lawsuit claims, property actions and/or other legal entanglements, possibly resulting in court orders that can actually claim and seize the equipment, without any remuneration to the buyer whatsoever!

#4- In almost every case of “as-is” purchasing, many perishables or performance parts, such as lamps, fans, pumps, nozzles, etc. exhibit some signs of extreme wear and are often in need of replacement soon after the purchase. How much more spending will this add to your bottom line, especially with regard to the cost for parts? And how much will you have to pay for a “good” technician, who really knows how to fix the more technical problems; especially if that person lives a day or more away from you?

#5- How will you get the devices safely to your location? Will the seller properly pack your equipment and will the trucking company insure your shipment fairly, against damages? In most instances, salon owners and other sellers will not have retained the original packaging, in which the system was first freighted. As a result, they will have to makeshift some method to attempt to get the device to you, in one piece. Can you be certain that they are reliable and will they remember to include all of the components that you need

#6- Who will be responsible for setting up and servicing the devices? Unless the seller of the equipment ensures delivery and installation, this burden almost always falls upon the buyer. If any devices are damaged in shipping or improperly installed, severe impairment may result, creating yet another buyer’s nightmare. Very rarely will a seller, providing an “as-is” or “no warranty” deal, take any responsibility with regard to problems, especially after he has collected full payment.

The benefits of reconditioned equipment with a warranty and customer support.

Reputable suppliers that specialize in reconditioning equipment will almost always be a better option for purchasing used systems. And although the pricing difference for the purchase will usually be higher, (versus “as-is”), the benefits far outweigh the costs. Properly reconditioned equipment, from a reputable supplier, whether it is a sunbed, hydration system, body wrap device or the like, will generally include:

#1- A reliable warranty ranging from 30 days to one year, to ensure buyers that the equipment is in good order.

#2- A thorough dismantling of the device enabling the supplier to perform a thorough, detailed cleaning, repair, and component replacement on both interior as well as exterior aspects. And in the event that repainting is necessary, a professional supplier will always use pressurized systems and UV impervious material to eliminate irregularities A reconditioned system should always look as good inside as it does outside.

#3- A guarantee against any legal actions that may have been leveraged against the equipment, prior to the buyer’s purchase. And certainly, if the supplier is well established, they will likely be around to support the buyer against any unforeseen actions, encumbrances or litigations that could possibly arise over a period of years.

#4- A thorough testing of the devices for certain performance qualities such as output, air flow, engagement of various mechanical and electrical mechanisms, among a consortium of other things. In the end, the unit should look and perform like new, and in some cases, where improved lamps, parts, nozzles and the like are used, the system may work even better than new.

#5- High quality packaging and shipping options for all equipment, or even offer complete delivery and installation! The seller should be responsible to insure all outbound shipments against damages and assist the buyer with any claims. And in every case, good suppliers will either service their own equipment, or offer fair compensation and technical support to servicemen in the buyer’s area, throughout the warranty period. Any device problems after the sale, while still under warranty, directly resulting from component defect should be the responsibility of the seller, not the buyer!

#6- Quality installation and/or support in getting all equipment installed, setup and tested. A reputable supplier should always provide the adequate service and support after the sale as well. If reconditioning is done properly, it will be the virtual equivalency of buying a new unit, with just some prior usage.

Know the supplier’s reputation. It can be the difference between a smooth and successful investment and an exasperating ordeal.

The last and most important factor is to know the supplier with whom you are negotiating. What quality and effort have they really applied to the refurbishing process? What is their reputation in the industry? What components have they replaced in your intended purchase? How well do they stand by their warranties? Do they offer installation along with either delivery or shipping? How good do their systems look up close? Do they have a showroom of equipment in a temperature-controlled environment, or are the units kept unassembled in unheated and un-cooled storage facilities? Will they open up a unit for you to inspect internally if you choose to visit… or will they forward photos of a device’s interior? Are they willing to give you at least three references that you can contact, for purchasers to whom they sold “reconditioned” units, (that are not salons that they own)? What variety of options do they offer in equipment selection and replacement components, such as lamps? Will they include timers, buck boosters, and other peripheral items with the purchase? Are they willing to find and recondition devices, specially ordered, specifically for you? Do they offer consultation and support for equipment selection as well as helping start-up investors get off the ground? Can they provide you financing for their used systems? These are just some of the questions that you should be asking. If a supplier seems resistant toward giving answers to these types of questions, it may mean that they have something to hide. No amount of research is ever too much.

Finally, after you have determined the right company with which to work, and the equipment best suited for you, be sure to get everything in writing. It should include the exact identification and models of the reconditioned systems, total costs for all equipment, labor, shipping, any peripheral items, etc., along with terms of payment and no hidden fees. Also, the proper addresses for the parties involved and the specifics regarding the warranty are a must.

In the end, if your supplier has done a good job and your choices were prudent, you will find that you have not only saved an enormous amount of money, for virtually “good-as-new” equipment, but your equitable value shall remain very high. Remember that from the minute you install a brand new system, you have reduced its value by at least half, as a rule! Whereas, with properly reconditioned systems, you have only paid about half or less of the costs for new, so your investment dollar retains far greater value.